Malaysia trade jumps to near three-year high amid front-loading
[KUALA LUMPUR] Malaysia's trade rose to an almost three-year high, with exports surpassing expectations amid front-loading activity.
The nation's trade jumped 18.2 per cent in April from the previous year to RM261.9 billion (S$79.1 billion), the highest monthly value recorded since August 2022, according to the Ministry of Investment, Trade and Industry. Exports rose 16.4 per cent and imports were up by 20 per cent, exceeding analysts' median estimates for gains of 7.5 per cent and 2.5 per cent, respectively.
Exporters have hastened shipments to preempt US tariffs. President Donald Trump in April announced a 90-day-pause on plans to impose a 24 per cent levy on Malaysia, while imposing a 10 per cent tariff on most countries in the meantime. Malaysian officials are negotiating to bring the levies down to zero.
Demand for manufactured goods, in particular electrical and electronic (E&E) products, increased by almost RM16 billion, boosting last month's exports, the ministry said in a statement. Agriculture goods, especially palm oil and palm-oil based products, also contributed to higher shipments, it said.
'We have already observed some signs of front-loading in E&E exports as firms try to soften the impact of tariffs,' Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said at a briefing on May 16. 'This underscores the strong underlying demand for E&E products. We expect demand for E&E to continue, supported by Malaysia's entrenched position in the global value chain and AI-related demand.' BLOOMBERG
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